- Markets embraced hope that Washington officials are close to reaching an agreement to increase the debt ceiling, prompting a broad surge in stocks from Europe to Japan Friday.
- The DAX Index was on track for its first record since January 2022, oil was on track for its best week since mid-April, and the Nikkei 225 closed at a 33-year high, as Wall Street momentum spilled over. S&P 500 futures rose slightly after the index reached a nine-month high on Thursday.
- According to a White House official, Biden told his negotiation team in a call from Japan early Friday that he is sure Congress will act in time to avoid a default. House Speaker McCarthy and Senate Majority Leader Schumer are planning votes on a bipartisan agreement in the coming days.
- Treasuries recovered some of their losses after a selloff triggered by growing concerns that the Federal Reserve will cease its credit tightening programme next month. The dollar index dropped 0.3%.
- China's yuan recovered from an earlier drop after the central bank pledged to limit yuan speculation and urged for greater market stability. The offshore yuan rose 0.5% after breaking over the closely watched 7 per dollar mark following the PBoC statement.
- BofA: OPEC is likely to take more barrels out of the market.
- BofA: The biggest pain trade in next 12 months is Fed Funds Rate at 6% not 3%.